Appfrica

The other day I responded to a student who was seeking advice on relocating to start a venture in East Africa. I thought I’d share the email here since it’s likely relevant to others.

The first thing I’d recommend when starting a new business out of the country is to try to find a local business attorney who comes highly recommended from other professionals in that country. You want someone who can help you register your company in a timely fashion, but you also don’t want to get ripped off by paying too much.

The reason to do this is because doing it yourself will likely be incredibly frustrating. You’ll have to learn the intricacies of the local legal system and that can prove challenging, so finding a good (reasonably priced) attorney goes a long way.

Secondly, learn the local labor laws before hiring anyone. You’ll need to know what’s required to hire someone (paying local taxes and benefits) and, if it comes to it, how to terminate employment.

Whether you are based in-country or not, spend time on the ground with the people who you will be working with or who will be working for you. It’s hard to judge people’s character in only a short time but the best way to do it is to work with them while you’re there face-to-face, to build a relationship.

Finally, make connections with the management of other local businesses. For the most part, the business community looks after each other and will be keen to make friends. To accomplish some of the above tasks (like finding a lawyer), you may have to do a bit of networking anyways. Whenever I have a problem in business, it’s usually other business owners who are the most sympathetic because they’ve likely had to deal with similar challenges.

Here are a few blog posts I and others have written on the subject –

Capacity versus Competency – http://appfrica.com/2010/05/13/capacity-versus-competency/
Reaction to the NYTimes Profile on African Startups – http://appfrica.com/2009/09/10/reaction-to-the-nytimes-profile-on-african-startups/
Keep the Fish (ProjectDiaspora.org) – http://projectdiaspora.org/beta/2007/12/08/keep-the-fish-ill-take-the-fishing-pole/
The Experience of Starting a Business in Africa (VC4Africa) – http://www.vc4africa.com/profiles/blogs/the-experience-of-starting-a

Photo Credit: Sarah Mccans